What Is Contract Lifecycle Management And How Can CLM Tools Help Your Business?
Contract lifecycle management (CLM) is the process of managing all aspects of an agreement from its creation to its expiration. CLM tools are designed to streamline this process and make it easier for businesses to manage their contracts.
In this blog post, we will discuss what contract lifecycle management is and how CLM tools can help your business stay organized, and improve communication. And increase efficiency.
Defining Contract Lifecycle Management
Contract Lifecycle Management (CLM) is a process that allows businesses to manage their contracts efficiently and securely. It is a comprehensive system for the entire lifecycle of a contract – from drafting, negotiation, and execution to ongoing management, tracking, and renewal.
CLM software helps to streamline the contract creation process by automating the administration and management of all related data.
This includes: drafting documents, negotiating terms and conditions, signing documents, storing and sharing documents securely, tracking timelines, and ensuring contractual compliance.
Therefore, the CLM process involves different stages to ensure that contracts are handled properly and securely. These include Creation, Negotiation, Execution, Renewal, Administration, and Archiving.
The Creation stage involves drafting the contract using templates or custom text, agreeing on the terms and conditions, and deciding on the signatures required.
The Negotiation stage involves further defining the terms and conditions of the contract with all parties involved.
The Execution stage involves signing off on the contract with all parties and verifying that all signatures are valid.
The Renewal stage involves keeping track of the expiration date of the contract and any changes that need to be made before it is renewed.
The Administration stage involves monitoring the contract for compliance with laws and regulations and managing any changes or updates needed throughout its lifetime.
The Archiving stage involves securely storing the completed contract for future reference and analysis.
Contract Lifecycle Management solutions can help businesses increase efficiency, streamline processes, save time and money, improve compliance, and reduce risk.
Also, by taking advantage of this technology, companies can ensure that their contracts are managed effectively and securely.
The Benefits Of Implementing A CLM Solution
Moreover, contract lifecycle management (CLM) solutions offer businesses a range of advantages that can improve their efficiency, reduce costs, and simplify their operations. Implementing a CLM solution can help businesses:
1. Streamline their Contract Processes: CLM solutions provide businesses with an automated way to manage contracts and related documents. This helps streamline contract processes, saving time and eliminating the need for manual data entry and paperwork.
2. Increase Compliance: CLM solutions help businesses stay compliant with regulations and industry standards by providing easy access to contract documents, clauses, and other details.
3. Improve Efficiency: CLM solutions allow businesses to quickly and easily create, review, and approve contracts, eliminating the need for manual processes and improving efficiency.
4. Save Money: CLM solutions can save businesses money by reducing costs associated with paper-based processes, errors due to manual processes, and legal fees associated with non-compliant contracts.
5. Monitor Contract Performance: CLM solutions enable businesses to monitor the performance of their contracts and identify any areas where improvements may be needed. However, this can help them ensure they are getting the most out of their contracts.
The Different Types Of CLM Software
Contract lifecycle management (CLM) software comes in various forms, each designed to support a different aspect of the contract process. Depending on the specific needs of your business, some CLM solutions may be better suited for your organization than others. Here are some of the most popular types of CLM software:
Document Management: Document management CLM software makes it easy to track, manage and store all types of documents related to contracts. This type of solution also helps automate document reviews and approvals.
Contract Automation: Furthermore, contract automation CLM solutions make it possible to quickly generate legally compliant contracts with just a few clicks. Therefore, this type of software often comes with an easy-to-use interface and a library of pre-made templates and clauses.
Negotiation Tools: Negotiation tools help streamline the negotiation process by making it easier to compare different contract versions side by side and quickly resolve disputes. This type of CLM software also allows users to collaborate securely over long distances.
Analytics & Reporting: CLM solutions that include analytics and reporting features help organizations gain better insights into their contract performance. This type of software can help identify areas for improvement as well as measure performance across various departments or regions.
Digital Signing: Digital signing tools make it possible to securely sign contracts without having to print and scan them. However, this type of CLM software often integrates with existing business applications, allowing users to quickly and easily complete digital signatures within those applications.
How To Choose The Right CLM Solution For Your Business
When it comes to selecting a contract lifecycle management (CLM) solution for your business, it’s important to take the time to research. And compare different vendors in order to find the solution that best fits your needs. Here are some things to consider when making your decision:
1. Cost – CLM solutions come in different price points and packages, so you’ll need to determine how much you’re willing to spend. In addition, if budget is a concern, you may want to look for a solution that offers tiered pricing or a pay-as-you-go model.
2. Security and Compliance – Depending on the type of contracts you manage, you may need to ensure that the CLM solution you select meets certain security and compliance standards. Be sure to check with your legal department before making a purchase.
3. Automation – Most CLM solutions include automation capabilities, but the level of automation varies depending on the product. Make sure to review the specific features offered by each vendor and consider which ones will be most useful to your business.
4. Integration – Some CLM solutions can be integrated with other software applications, such as CRM and ERP systems. Check to see if the solution you’re interested in can integrate with the applications you already use.
5. Support – You’ll want to make sure the CLM solution you choose provides reliable customer service. And technical support when you need it. Also, check out customer reviews and look for a vendor with a proven track record of providing quality support.
By keeping these factors in mind, you should be able to narrow down your options and find the CLM solution that works best for your business. Good luck!
The Top 5 CLM Solutions On The Market
1. Apttus: Apttus is a comprehensive contract lifecycle management platform that provides users with end-to-end control over the entire process. It features such as automated workflow and document automation, real-time visibility into contract performance, analytics and reporting, and automated compliance checks.
2. Icertis: Icertis is a cloud-based CLM system designed to streamline contract creation and management. It offers features such as automated workflows, customizable document templates, advanced analytics, and built-in artificial intelligence.
3. Conga: Conga is an intuitive, cloud-based CLM solution that provides users with a secure, centralized repository for all contract-related documents. In addition, it also includes a range of features such as document tracking, automated reminders, and AI-powered negotiation support.
4. Adobe Sign: Adobe Sign is a cloud-based solution that simplifies the process of creating, sending, signing, and managing contracts. It includes features such as real-time analytics and reports and automated reminders. And notifications, secure document storage, and a mobile app for on-the-go access.
5. ContractWorks: ContractWorks is an easy-to-use CLM platform designed to help teams create and manage contracts quickly and efficiently. Furthermore, it provides features such as workflow automation, built-in analytics and reporting, document management capabilities, and secure document sharing.